NU Online News Service, June 18, 12:09 p.m.EDT

The Geneva Association, International Association for the Studyof Insurance Economics Body, said it supports a study by theInternational Association of Insurance Supervisors (IAIS) aboutsystemic risk in the insurance industry.

The IAIS concluded the global insurance industry "is susceptibleto systemic risks generated in other parts of the financialsector," but "there is little evidence of insurance eithergenerating or amplifying systemic risk."

The IAIS study follows a similar one in March done by the GenevaAssociation, which calls itself the leading international insurancethink tank for strategically important insurance and riskmanagement issues.

Both associations are looking to assist the Financial StabilityBoard (FSB)–an international body established to promoteregulatory, supervisory and other financial sector policies–whichwill report soon to the leaders of the G-20. The FSB wasestablished in April last year and tasked with promoting globalfinancial stability. The United States is a member.

The Geneva Association has asked the FSB to take note of theconclusions and recommendations in the IAIS report. Geneva saidsome of the conclusions offered by IAIS on systemic risk differfrom its own, but the association "welcomes the fact IAIS tookcareful note of the insurance business model" to "proposesupervisory enhancements which are broadly supported by theindustry."

The IAIS also recommends "stronger risk management and enhancedapproaches to resolvability to minimize adverse externalities."